US housing recovery called into question by M&G

M&G’s Global Real Estate Securities fund manager has questioned the wisdom behind equity investors attempting to buy into a US housing market recovery. Gillian Tiltman, who has run the £80.2m fund since June 2010, said that the US housing market would pick up as part of a cyclical recovery, but warned against hope of a “structural recovery”.
The manager said that home ownership had swelled to roughly 68 per cent in the US before the financial crisis due to the easy availability of mortgages. It had since fallen to approximately 60 per cent, but Ms Tiltman said the eight percentage-point drop was largely down to a “segment of the market that isn’t real”…………………………………..Full Article: Source